AZZ Incorporated (AZZ)
Cash conversion cycle
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.30 | 36.58 | 51.11 | 67.94 | 52.16 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 34.30 | 36.58 | 51.11 | 67.94 | 52.16 |
February 28, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.30 + — – —
= 34.30
AZZ Incorporated's cash conversion cycle has shown a fluctuating trend over the past five years. In February 2021, the cash conversion cycle was 52.16 days, indicating that it took AZZ 52.16 days to convert its investments in inventory into cash received from sales.
By February 2022, the cash conversion cycle increased to 67.94 days, suggesting a longer period for AZZ to realize cash from its operations. However, in the following year, February 2023, the cycle decreased to 51.11 days, indicating an improvement in the company's efficiency in managing its cash flow.
A significant improvement was observed by February 2024, with the cash conversion cycle decreasing further to 36.58 days. This reduction signifies that AZZ was able to optimize its working capital management and convert investments into cash more efficiently.
The most recent data as of February 28, 2025, shows a further decrease in the cash conversion cycle to 34.30 days, indicating a continued positive trend in the company's cash conversion efficiency. Overall, the decreasing trend in the cash conversion cycle over the years implies potential improvements in AZZ's inventory turnover, accounts receivable collection, and accounts payable management, reflecting better cash flow management within the organization.
Peer comparison
Feb 28, 2025